Key Takeaways Sallie Mae missed Q2 earnings and revenue estimates as lower NII and higher expenses hurt the results. SLM's non-interest income grew on gains from loan sales and higher other income.Sallie Mae's private education loans held for investment declined y/y to $19.5 billion. Sallie Mae (SLM - Free Report) , reported second-quarter 2026 earnings per share (EPS) of 29 cents, missing the Zacks Consensus Estimate of 46 cents. The metric declined 9.4% from the year-ago quarter.
Revenues of $338.8 million missed the Zacks Consensus Estimate of $355.2 million by 4.6%. This compares with the year-ago revenues of $376.82 million.
The quarterly results were hurt by lower net interest income (NII), higher provisions for credit losses and an increase in expenses. However, growth in non-interest income and private education loan originations offered some support.
The company’s GAAP net income attributable to common stock was $55 million compared with $67 million in the year-ago quarter.
Sallie Mae’s NII Declines, Expenses RiseSecond-quarter NII totaled $332.8 million, down 11.7% from $376.8 million in the prior-year quarter.
The quarterly net interest margin was 4.75%, contracting 56 basis points year over year.
Quarterly non-interest income was $68.3 million, up significantly from $26.8 million in the year-ago quarter. Gains on sales of loans were $14.9 million against a loss of $13,000 in the prior-year quarter. Other income grew 54.1% year over year to $45.3 million.
Non-interest expenses increased 16.6% year over year to $195 million. Compensation and benefits expenses rose 18.1% to $100.3 million. Other operating expenses were $88.9 million, up 24.1%.
SLM’s Credit Quality: Mixed BagIn the second quarter, provisions for credit losses were $125.7 million, down from $148.7 million in the prior-year quarter.
Net charge-offs were $113 million in the reported quarter, up from the year-ago quarter.
Delinquencies as a percentage of loans in repayment were 3.72% for the second quarter of 2026 compared with 3.51% in the prior-year quarter.
Sallie Mae’s Balance Sheet PositionAs of June 30, 2026, deposits totaled $19.9 billion, down from $20.5 billion in the year-ago quarter.
Private education loans held for investment, net, were $19.5 billion, down from $21.2 billion in the prior-year quarter.
Average loans outstanding, net, totaled $21.1 billion in the quarter. In the reported quarter, private education loan originations increased 4.5% year over year.
Key Ratios of SLMThe efficiency ratio was 48.6% compared with 41.4% in the year-ago quarter.
Return on assets was 0.8% compared with 1% in the prior-year quarter.
Return on common equity was 9.9% compared with 12.6% in the year-ago quarter.
SLM Share Repurchase UpdateThe company’s $200-million accelerated share repurchase concluded in June 2026. It repurchased 9.3 million shares under the program, including the final delivery of 0.9 million shares in the second quarter. As of June 30, 2026, $242 million remained available under the company’s 2026 share repurchase program.
Sallie Mae Reaffirms 2026 OutlookManagement reaffirmed its 2026 EPS guidance of $3.10-$3.20.
Sallie Mae expects year-over-year private education loan origination growth of 12-14%, net charge-offs of $365-$385 million and non-interest expenses of $750-$780 million.
The company sold $420 million in private education loans during the quarter, including $399 million of principal and $21 million of capitalized interest through its strategic partnerships business.
Final Thoughts on SLMSallie Mae delivered a disappointing second-quarter performance. Lower NII, margin contraction, higher expenses, declining loan and deposit balances, and elevated delinquencies remain concerning. Nonetheless, lower provisions for credit losses, growth in non-interest income and higher private education loan originations were positives.
Currently, SLM carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Dates & Expectations of SLM’s PeersOneMain Holdings (OMF - Free Report) is slated to announce second-quarter 2026 numbers on July 29.
In the past week, the Zacks Consensus Estimate for OneMain’s quarterly earnings has been revised downward to $1.31. This implies a 9.7% decrease from the prior-year reported number.
Navient (NAVI - Free Report) is scheduled to announce quarterly numbers on Aug. 6.
In the past seven days, the Zacks Consensus Estimate for Navient’s quarterly earnings has been unchanged at 19 cents. This indicates a 9.5% decline from the prior-year reported number.
SLM NASDAQ: SLM, known as Sallie Mae, reported second-quarter 2026 GAAP diluted earnings of $0.29 per share and said early indicators from the first peak season following Federal PLUS reform are tracking at the high end of expectations or better.
Chief Executive Officer Jonathan Witter said the company has spent the past year preparing for changes in the higher education financing market after Federal PLUS reform “created the potential for a $4.5 billion-$5 billion increase in annual originations for Sallie Mae over the next several years.” He said Sallie Mae has completed planned product and capability updates ahead of peak season, including enhancements to its medical, dental, law and MBA products and the launch of a new parent loan.
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“While peak season is just beginning and it is too early for definitive conclusions, the application and volume trends for these new products ... are at the higher end of our expectations or better,” Witter said. He added that the trends, if sustained, support the company’s 2026 origination estimates and its longer-term view of the opportunity from PLUS program changes.
Originations Rise as Credit Quality Holds Steady Sallie Mae reported second-quarter loan originations of $716 million, up nearly 4.5% from the prior-year quarter. Witter said origination credit quality improved modestly year over year, with average FICO scores rising to 755 from 754, while cosigner rates remained strong at 84%.
The company also emphasized its position with school partners. Witter said Sallie Mae remains a preferred lender for more than 2,100 schools and has focused on supporting those relationships as the financing landscape changes.
Net Interest Income Falls, but Fee Revenue Grows Co-President and Chief Financial Officer Peter Graham said Sallie Mae generated $333 million of net interest income and $45 million of other income in the quarter. Net interest income declined by $44 million from the year-ago period, while other income increased by $16 million, driven by recurring program management fees from the company’s strategic partnership and growth in servicing fee revenue.
Net interest margin was 4.75% for the quarter. Graham said the moderation was expected and primarily reflected higher liquidity levels following a loan sale completed in late March. He said the company expects margin expansion to resume in the second half as excess liquidity is deployed into peak-season originations.
“As a result, we believe the second quarter will likely represent the low point for margin this year,” Graham said. In response to an analyst question, he said the company expects to normalize closer to its long-term target range of around 5%, though not necessarily far above that level in 2026.
Debt Resolution Activity Weighs on Recoveries Credit remained a major focus of the call. Witter said Sallie Mae has identified activity affecting a small borrower segment that the company believes has both the willingness and capacity to repay but is moving directly through delinquency to default. He said many of those borrowers appear to be engaging with debt resolution providers whose services are marketed as consolidation or refinancing solutions.
Witter said Sallie Mae does not believe many of those practices are in customers’ best interests and has taken steps to increase control over post-default recoveries. The company previously estimated a potential roughly $25 million impact to 2026 recoveries from the change in recovery practices, but Witter described the issue as “largely a timing dynamic.”
Net charge-offs were $113 million in the quarter, up from $94 million in the prior-year quarter. Witter said about $16 million of the year-over-year increase was attributable to the misaligned third-party debt resolution practices and related changes in recovery strategy. He said the company does not view the increase as a broad-based weakening in credit.
Private education loans delinquent 30 days or more were 3.7% of loans in repayment, up from 3.5% a year earlier but down from 4% at the end of the first quarter. The provision for credit losses was $126 million, down from $149 million in the year-ago quarter, and the reserve rate was 5.89%, down six basis points from the prior-year period.
Witter also pointed to continued performance from loan modification programs. He said borrowers in active modification cohorts have payment success rates above 80% over six- and 12-month periods, while more than 75% of borrowers exiting the programs are consistently making payments after three and six months.
Expenses Rise as Company Invests for Growth Non-interest expenses were $195 million, up $28 million from the prior-year quarter. Graham said most of the increase reflected one-time investments in product enhancements and strategic initiatives tied to expected growth from federal lending reforms. The efficiency ratio was 48.6%, up seven percentage points year over year.
Graham said revenue growth from servicing and recurring program management fees offset a significant portion of those investments. In the Q&A session, he said the company still expects the rate of expense growth in 2027 to be roughly half the rate from 2025 to 2026, while noting that management would like to do better.
Guidance Updated, Buybacks Continue Sallie Mae narrowed its 2026 net charge-off guidance range, maintaining the high end at $385 million and raising the low end to $365 million. The company affirmed all other guidance metrics. Graham said the expected $25 million potential impact from recovery changes has been partially offset by slightly better-than-expected performance in the broader portfolio.
The company also continued to return capital to shareholders. Graham said Sallie Mae completed a $200 million accelerated share repurchase program during the second quarter, repurchasing 9.3 million shares. Year to date, the company has repurchased about 13 million shares, or 6.5% of shares outstanding at the end of 2025, at an average price of $21.95 per share.
Since 2020, Graham said Sallie Mae has reduced shares outstanding by approximately 59% at an average price of $17.19 per share. The company ended the quarter with $242 million remaining under its repurchase authorization, which it expects to substantially deploy during the remainder of 2026.
Sallie Mae ended the quarter with liquidity equal to 18.6% of total assets. Total risk-based capital was 13.1%, and Common Equity Tier 1 capital was 11.8%.
During the Q&A session, Graham said discussions with a potential second loan sale partner are progressing and could close in the third quarter or early fourth quarter. He said the existing partnership with KKR is performing according to plan and that both KKR and the potential second partner have expressed interest in building capabilities for graduate loan products.
About SLM (NASDAQ:SLM)SLM Corporation, operating as Sallie Mae Bank, is a leading U.S.-based consumer banking company specializing in education financing and related banking products. The company provides a range of private student loans for undergraduate and graduate studies, Parent PLUS loans, and specialized financing for career and certificate programs. In addition to its core lending services, Sallie Mae offers deposit products including savings accounts, checking accounts, money market accounts, certificates of deposit, and credit cards tailored to students and young adults.
Founded in 1972 as the Student Loan Marketing Association—a government-sponsored enterprise—Sallie Mae was privatized in 2004 and has since focused on expanding its private education loan offerings and digital banking solutions.
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Sallie Mae (SLM - Free Report) came out with quarterly earnings of $0.29 per share, missing the Zacks Consensus Estimate of $0.46 per share. This compares to earnings of $0.32 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -36.96%. A quarter ago, it was expected that this student loan company would post earnings of $1.14 per share when it actually produced earnings of $1.54, delivering a surprise of +35.09%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Sallie Mae, which belongs to the Zacks Financial - Consumer Loans industry, posted revenues of $332.82 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 6.31%. This compares to year-ago revenues of $376.82 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Sallie Mae shares have lost about 6.8% since the beginning of the year versus the S&P 500's gain of 9.6%.
What's Next for Sallie Mae?While Sallie Mae has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Sallie Mae was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.40 on $358.27 million in revenues for the coming quarter and $3.16 on $1.45 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Consumer Loans is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Open Lending (LPRO - Free Report) , has yet to report results for the quarter ended June 2026.
This company is expected to post quarterly earnings of $0.01 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Open Lending's revenues are expected to be $22.84 million, down 9.8% from the year-ago quarter.
Sallie Mae (SLM - Free Report) reported $332.82 million in revenue for the quarter ended June 2026, representing a year-over-year decline of 11.7%. EPS of $0.29 for the same period compares to $0.32 a year ago.
The reported revenue represents a surprise of -6.31% over the Zacks Consensus Estimate of $355.22 million. With the consensus EPS estimate being $0.46, the EPS surprise was -36.96%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Sallie Mae performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Interest Margin: 4.8% versus 5.1% estimated by two analysts on average.Net Interest Income: $332.82 million versus $355.48 million estimated by two analysts on average.Gains (losses) on sales of loans, net: $14.94 million versus $10.57 million estimated by two analysts on average.Other income: $45.35 million versus the two-analyst average estimate of $46.42 million.Total Non-Interest Income: $68.29 million versus $56.98 million estimated by two analysts on average.View all Key Company Metrics for Sallie Mae here>>>
Shares of Sallie Mae have returned +5.8% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
NEWARK, Del.--(BUSINESS WIRE)--Sallie Mae (Nasdaq: SLM), formally SLM Corporation, today released second quarter 2026 financial results. Complete financial results and related materials are available at www.SallieMae.com/investors. The materials will also be available on the Securities and Exchange Commission's website at www.sec.gov. Sallie Mae will host an earnings conference call today, July 23, 2026, at 5:30 p.m. ET. Executives will be on hand to discuss various highlights of the quarter an.
NEWARK, Del.--(BUSINESS WIRE)--Sallie Mae (Nasdaq: SLM), formally SLM Corporation, today announced a 2026 third-quarter dividend on its Preferred Stock Series B of $1.4393042 per share. The company also announced a 2026 third-quarter dividend on its common stock of $0.13 per share.Both preferred stock and common stock dividends will be paid on Sept. 15, 2026, to the respective stockholders of record at the close of business on Sept. 4, 2026.Sallie Mae (Nasdaq: SLM) believes education and life-lo.
Wall Street analysts expect Sallie Mae (SLM - Free Report) to post quarterly earnings of $0.46 per share in its upcoming report, which indicates a year-over-year increase of 43.8%. Revenues are expected to be $355.22 million, down 5.7% from the year-ago quarter.
Over the last 30 days, there has been an upward revision of 1.1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Given this perspective, it's time to examine the average forecasts of specific Sallie Mae metrics that are routinely monitored and predicted by Wall Street analysts.
The consensus among analysts is that 'Net Interest Margin' will reach 5.0%. The estimate compares to the year-ago value of 5.3%.
Analysts expect 'Net Interest Income' to come in at $355.48 million. The estimate is in contrast to the year-ago figure of $376.82 million.
It is projected by analysts that the 'Other income' will reach $46.42 million. The estimate is in contrast to the year-ago figure of $29.43 million.
Analysts predict that the 'Total Non-Interest Income' will reach $56.98 million. The estimate compares to the year-ago value of $26.78 million.
View all Key Company Metrics for Sallie Mae here>>>
Shares of Sallie Mae have demonstrated returns of +8.4% over the past month compared to the Zacks S&P 500 composite's +0.3% change. With a Zacks Rank #3 (Hold), SLM is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
The market expects Sallie Mae (SLM - Free Report) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 23. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis student loan company is expected to post quarterly earnings of $0.47 per share in its upcoming report, which represents a year-over-year change of +46.9%.
Revenues are expected to be $355.22 million, down 5.7% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 18.7% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Sallie Mae?For Sallie Mae, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -14.10%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Sallie Mae will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Sallie Mae would post earnings of $1.14 per share when it actually produced earnings of $1.54, delivering a surprise of +35.09%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Sallie Mae doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsCapital One (COF - Free Report) , another stock in the Zacks Financial - Consumer Loans industry, is expected to report earnings per share of $5.08 for the quarter ended June 2026. This estimate points to a year-over-year change of -7.3%. Revenues for the quarter are expected to be $15.7 billion, up 25.7% from the year-ago quarter.
The consensus EPS estimate for Capital One has been revised 4.3% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +1.54%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Capital One will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
NEWARK, Del.--(BUSINESS WIRE)--Sallie Mae® (Nasdaq: SLM), formally SLM Corporation, will release second-quarter 2026 financial results after market close on Thursday, July 23, 2026. A live audio webcast and presentation slides will be available at SallieMae.com/investors and the hosting website. Investors should log in at least 15 minutes prior to the broadcast. The earnings news release will be available at SallieMae.com/investors. A replay will also be available on the site. Sallie Mae (Nasda.
NEW YORK--(BUSINESS WIRE)---- $SLM #cashflowintelligence--Nova Credit, a leading credit infrastructure and analytics company, today announced that Sallie Mae® (Nasdaq: SLM), the leader in private student lending, has selected the Nova Credit's Income Navigator to support income verification as part of its private student loan underwriting process. Income Navigator enables lenders to quickly and accurately verify consumer income, providing a more complete picture of an applicant's financial profile. Sallie Mae will leverage t.
Sallie Mae today announced the launch of a new Parent Loan designed to give families an additional, flexible option to pay for higher education as [url="]feder
NEWARK, Del.--(BUSINESS WIRE)--Sallie Mae today announced the launch of a new Parent Loan designed to give families an additional, flexible option to pay for higher education as federal student loan options evolve. The Sallie Mae® Parent Loan allows credit-qualified individuals, including parents, guardians, or significant others, to support the financing of undergraduate and graduate education for students and offers competitive interest rates that can be lower than federal Parent PLUS loans,.
PTC Inc. still has a steady and recurring lifecycle software base with offerings across CAD, PLM, ALM, SLM, and general SaaS workflows. Their newer offerings, like Orbit and Jetstream, also move PTC towards a clearer AI integration path for its products and services. I do believe the sale of Kepware and ThingWorx changed its prospects a bit. In part, it streamlined PTC's business and helped finance stock buybacks.
Key Takeaways SLM Q1 EPS of $1.54 beat estimates and rose 10% y/y.Sallie Mae benefited from lower credit provisions and higher NII despite lower fee income.SLM raised the 2026 EPS outlook to $3.10-$3.20 on loan growth and planned share repurchases. SLM Corporation (SLM - Free Report) reported first-quarter 2026 earnings per share (EPS) of $1.54, beating the Zacks Consensus Estimate of $1.14. The metric rose 10% from the year-ago quarter.
The quarterly results benefited from a rise in net interest income (NII), lower provisions for credit losses, and disciplined decisions across funding, expenses and capital management, partially offset by a decline in non-interest income and an increase in expenses.
The company’s GAAP net income attributable to common stock was $304 million compared with $301 million in the year-ago quarter.
Sallie Mae’s NII & Expenses RiseFirst-quarter NII totaled $375.4 million, up from $374.9 million in the prior-year quarter. The metric beat the Zacks Consensus Estimate by 2.4%.
The quarterly net interest margin was 5.29%, expanding 2 basis points year over year.
Quarterly non-interest income was $185 million, down from $206 million in the year-ago quarter.
Non-interest expenses increased 10.7% year over year to $171 million. Compensation and benefits expenses rose 13.9% year over year to $103 million. Other operating expenses were $62 million, up 24.1% year over year.
SLM’s Credit Quality MixedIn the first quarter, the company reported provision benefits of $11 million, in contrast to provisions for credit losses of $23 million in the prior-year quarter.
Net charge-offs were $89 million in the reported quarter.
Delinquencies as a percentage of loans in repayment were 3.98% for the first quarter of 2026 compared with 3.58% in the prior-year quarter.
Loans in a hardship forbearance were 0.99% for the reported quarter compared with 0.92% in the year-ago quarter.
Sallie Mae’s Balance Sheet PositionAs of March 31, 2026, deposits totaled $20.5 billion, up from $20.1 billion in the year-ago quarter.
Private education loans held for investment, net, were $19.9 billion, down from $21.1 billion in the prior-year quarter.
Average loans outstanding, net, totaled $23.3 billion in the quarter. In the reported quarter, private education loan originations increased 5% year over year.
Key Ratios of SLMThe efficiency ratio was 30.6% compared with 26.6% in the year-ago quarter.
Return on assets was 4.2%, stable with the prior-year quarter.
Return on common equity was 56.4% compared with 60.1% in the year-ago quarter.
Sallie Mae Lifts 2026 Outlook as Growth Initiatives ExpandManagement raised the 2026 EPS guidance to $3.10-$3.20 (previous guidance was $2.70-$2.80). The updated view assumes full utilization of the $500-million share repurchase authorization in 2026 and roughly $1 billion of incremental loan sales beyond the initial plan.
Other elements of the company’s 2026 outlook were reaffirmed. Sallie Mae continues to expect year-over-year private education loan origination growth of 12-14%, net charge-offs of $345-$385 million and non-interest expenses of $750-$780 million. Executives also reiterated that the firm is preparing for expected multi-year growth tied to federal reforms affecting graduate lending, while continuing to build partnership capacity to support future flow sales.
Final Thoughts on SLMSallie Mae delivered a decent first-quarter performance, supported by stable NII, lower provisions for credit losses and strong loan sales. Growth in private education loan originations and continued capital deployment remain positives. However, higher expenses, a decline in non-interest income and elevated delinquency levels warrant close monitoring going forward.
SLM Corporation Price, Consensus and EPS Surprise
Currently, SLM carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance & Earnings Expectations of SLM’s PeersAlly Financial’s (ALLY - Free Report) first-quarter 2026 adjusted earnings of $1.11 per share surpassed the Zacks Consensus Estimate of 93 cents. The bottom line reflected a 90% jump from the year-ago quarter.
Results primarily benefited from a rise in net financing revenues and a sharp increase in other revenues. Lower expenses and an increase in loan and deposit balances were tailwinds for ALLY. However, a rise in provisions was an undermining factor.
Navient (NAVI - Free Report) is scheduled to announce first-quarter 2026 results on April 29.
Over the past seven days, the Zacks Consensus Estimate for NAVI’s quarterly earnings has been unchanged at 17 cents. This implies a 39.3% decline from the prior-year quarter’s actual.
Chief Financial Officer Peter Graham and Chief Operational Officer Kerri Palmer Named Co-Presidents of the Company
NEWARK, Del.--(BUSINESS WIRE)--Sallie Mae® (Nasdaq: SLM), formally SLM Corporation, today announced it has named Chief Financial Officer Peter Graham and Chief Operational Officer Kerri Palmer Co-Presidents of the company. Reporting to Chief Executive Officer Jon Witter, Graham and Palmer will partner to ensure alignment and execution of the company’s strategy. Graham and Palmer collectively oversee the company’s commercial businesses within their respective areas of responsibility, following the recent retirement of the company’s Chief Commercial Officer.
Graham has served as Executive Vice President and Chief Financial Officer since 2023 overseeing finance, accounting, and treasury activities, as well as equity and fixed-income investor relations. As Co-President and Chief Financial Officer, Graham will also oversee strategic partnerships and emerging lines of business.
Palmer has served as Executive Vice President, Chief Operational Officer, and President of Sallie Mae Bank since 2023. She previously served as Chief Risk Officer and Chief Risk and Compliance Officer for the company. As Co-President and Head of Financial Services, Palmer will lead the company’s core private education loan business as well as credit and operations.
“Pete and Kerri are exceptional leaders with deep experience who are helping drive our strong performance and disciplined growth strategy,” said Jon Witter, Chief Executive Officer, Sallie Mae. “As CEO, I remain fully focused on leading the company, and these appointments will further strengthen our ability to execute our strategy with depth and continuity as we deliver for our customers and shareholders.”
The appointments of Graham and Palmer as Co-Presidents reflect the company’s continued commitment to providing growth opportunities for its leaders to support the organization’s long-term success.
For more information visit www.salliemae.com.
Sallie Mae (Nasdaq: SLM) believes education and life-long learning, in all forms, help people achieve great things. As the leader in private student lending, we provide financing and know-how to support access to college and offer products and resources to help customers make new goals and experiences, beyond college, happen. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.
SLM Corporation (SLM) trades at a low 6.6x P/E, despite strong Q1 2026 results, high ROE, and dominant private student loan market share. Q1 2026 EPS beat at $1.54, with management raising full-year guidance to $3.10–$3.20, supported by a 5.29% net interest margin and aggressive capital returns. Rising overdue loans (3.98% vs. 3.58% YoY) and higher provisions highlight growing credit risk, partially masked by one-time reserve releases from loan sales.
When Chris Gray sold his Shark Tank-backed scholarship search startup Scholly to Sallie Mae in 2023, he thought he had it all. Now he’s suing the student loan giant for wrongful termination and alleging that it’s selling the data his app collected, which includes personal info on minors, without properly informing users.
Gray co-founded the company a decade prior with the hope of helping students more easily find college scholarships that were going untapped. Within two years, he nabbed sharks Daymond John and Lori Greiner as investors after an appearance on the show.
With the acquisition, Gray became one of the few Black venture-backed fintech founders to exit their company, despite receiving some blowback that he was “selling out.” “I think being one of the first Black tech companies to get acquired by a bank, that’s really a big achievement,” he said at the time.
He took a vice president role at Sallie Mae and expected to settle in nicely at his new gig, while helping scale Scholly and making it free to use, he said in an exclusive interview with TechCrunch.
What happened next is detailed in Gray’s lawsuit against Sallie Mae in Delaware Superior Court, and in a whistleblower complaint he submitted to the Securities and Exchange Commission, both of which he filed earlier this month.
He alleges Sallie Mae laid off his employees, including his co-founders, and then went back on promises that it wouldn’t sell the users’ data, according to a TechCrunch review of both filings. He claims the company fired him a year after the acquisition when he tried to raise concerns about data privacy issues. Gray is seeking backpay and punitive damages in the suit, plus legal costs.
Gray told TechCrunch that before he agreed to the sale, he believed Sallie Mae would be prohibited from disclosing or selling non-public personal information about Scholly customers to third parties because it was a federally regulated financial institution.
Now he alleges that his acquirer got around any such regulations by putting Scholly into a subsidiary that is selling the data — including age, gender, race, and other indicators of an individual’s financial need — to third parties like universities and advertisers, possibly without students’ full awareness.
“I sold Scholly to a regulated bank because I believed it would protect the students who trusted us,” Gray told TechCrunch. “Instead, I watched the company build a non-bank subsidiary to do things the bank itself can’t legally do: sell student data. That’s not the company I thought I was joining.”
Sallie Mae denied Gray’s allegations, calling them “without merit” and declined to answer TechCrunch’s questions about its data privacy practices.
“While we don’t comment on pending litigation, it’s unfortunate a former employee is making false accusations about our company following his departure nearly two years ago. We plan to vigorously defend ourselves against these claims which are without merit or substance,” Rick Castellano, the company’s vice president of corporate communications, said in an email.
Asked which specific accusations were “false,” Castellano declined to comment.
From Alabama to Shark Tank Gray grew up low-income in Birmingham, Alabama, with a single mother and two siblings. He felt the barriers to higher education were “real and immediate” for someone like him.
Aside from being expensive, he felt he lacked access to information to help him make proper decisions about where to go and how to afford it, a pressure that only compounded after his mother lost her job in the 2008 recession.
“That experience shaped how I thought about the scholarship system later,” he recalled, saying he began to view education and scholarship as “a problem of access rather than a problem of merit.”
As a teenager, when the time came for him to apply for scholarships, he found the process fragmented and inefficient, he said. There was no centralized search for him to find opportunities, and when he did find a website with scholarship options, there were thousands of listings, but no reliable way to filter to see what he was actually eligible for. Not to mention the scams and outdated listings that persisted on some sites.
Still, he applied to about 75 scholarships over the course of seven months using public computers and the internet at the library, and won around $1.3 million in scholarship funding, including from the Bill and Melinda Gates Foundation and the Coca-Cola Scholars Foundation.
He studied economics and entrepreneurship at Drexel University and met students facing a familiar roadblock. “Students kept asking for help finding scholarships,” he told TechCrunch. “The funding existed with hundreds of millions of dollars unclaimed each year, but the search process was broken.”
He started mapping out the eight core criteria that determined scholarship eligibility — age, location, major, GPA, race, gender, field of study, and financial need.
“That became the foundation of Scholly’s matching algorithm,” he said.
During his senior year, Gray, alongside Nick Pirollo and Bryson Alef, whom he met as Coca-Cola Scholars, officially launched Scholly in 2013. For just $0.99 a month, students could use the platform and filter by eligibility criteria. “That price kept the business sustainable without having to sell data or run ads,” he said.
Scholly switched to a freemium model after Gray pitched the idea on Shark Tank. The sharks clamored over his idea in what became the “worst fight in Shark Tank history,” according to one of the hosts who invested. Scholly grew to 5 million users and made more than $30 million in cumulative revenue, Gray said.
In March of 2023, Sallie Mae’s corporate development team reached out to Scholly. The bank had just bought the scholarship organization Nitro College a year prior and was trying to move more into the scholarship and college-planning space. “It was a natural fit,” Gray said, of why the student loan institution wanted Scholly.
Sallie Mae bought Scholly in July 2023, brought Gray and his co-founders on board as employees, and made Gray a vice president of product management.
In addition to promising that it would “make Scholly free for all students, families, and other users,” Sallie Mae CEO Jon Witter said in 2023 that the acquisition “allows us to harness and build on Scholly’s innovative technology to unlock future strategic growth opportunities.”
Sallie Mae vs. “Sallie” For Gray, the canary in the coal mine came one year after Scholly’s acquisition.
He alleges in the suit that Sallie Mae laid off the Scholly founding team, including his co-founders, in July 2024. Around this same time, Gray claims he heard Sallie Mae executives discuss plans for selling Scholly user data in meetings.
Gray alleges executives told him his position was safe, and that the company was just restructuring. But when he went on to raise further concerns about the possible selling of Scholly data, he claims in his suit he was fired before a scheduled meeting with Witter, the CEO, where he planned to discuss those issues.
After his departure, around December 2024, Sallie Mae launched “Sallie.com.” This website describes itself as an “education solutions company,” and became home to the Scholly platform. It is separate from the website for Sallie Mae, which is home to the bank that makes student loans.
The Sallie.com website says it’s owned by an entity called SLM Education Services, LLC. Gray contends in his lawsuit and whistleblower complaint that Sallie Mae is using SLM Education Services in order to sell the personal data collected by Scholly, since it is not a closely regulated financial services company like the Sallie Mae banking arm.
Sallie.com discloses that it sells the following customer data in its privacy policy to third parties: name, phone number, email addresses, age, race, gender, education records, and geolocation data. The third parties it sells this information to, it says, include ad networks, educational institutions, brands, and companies dedicated to reselling consumer data.
Sallie Mae also pays Sallie “for the referrral of student loan customers,” according to the Sallie.com “About” page.
Gray argues in his complaints that the Sallie.com website may be easily confused with the official Sallie Mae website because of similar layouts and “sallie” logos, increasing the risk that students may hand over personal data to what they believe to be a bank.
Gray’s suit goes on to allege that Sallie Mae used Scholly user data to create something called Backpack Media in March, which it bills as a “first-to-market education media network” that “offers brands efficient, scalable access to highly desirable, hard to reach audiences – Gen Z, Gen Alpha, and those involved in their purchasing decisions,” according to a Sallie press release.
Castellano declined to comment on Backpack Media’s sources for data.
This would not be the first time a Salle Mae-affiliated company has been accused of deceptive or misleading behavior.
A company called Navient, which split from Sallie Mae in 2014, has faced restitution orders from the Federal Deposit Insurance Corporation, Department of Justice, and the Department of Education for overcharges. It was sued by the Consumer Financial Protection Bureau and reached a $1.85 billion settlement with 39 attorneys general for over what the attorneys general described as predatory student loans.
Gray said he knew of these past legal issues, but that he doesn’t regret the sale of Scholly as it helped make the platform free for every student. In fact, he said if he could, he would make the same decision to sell all over again.
“But I’d also raise the same concerns again,” he said. “Because I believe we should live in a system where an executive can speak up and change the course of a company in line with the law and fair business practices.”
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Key Takeaways ENVA plans to acquire Grasshopper to add a national bank charter and expand lending and deposit reach.ENVA could lower funding costs by 300 to 400 bps using deposits, improving margins and flexibility.ENVA targets $175 to $230M revenue synergies in two years, with over 15% EPS accretion expected in year one. Enova International, Inc. (ENVA - Free Report) is trying to reshape its model with the planned acquisition of Grasshopper. The logic is straightforward: pair Enova’s online lending engine with a digital-first bank platform and bring a national bank charter into the mix.
If approvals come through and integration goes as planned, the deal could lower funding costs, widen product reach, and lift earnings power.
The path is not linear, though, and near-term expense and credit trends still matter.
ENVA’s Grasshopper Plan Adds a National Bank AngleStructurally, the transaction aims to combine Enova’s established online lending capabilities with Grasshopper’s digital-first banking infrastructure. That pairing is designed to create a tighter link between loan origination and a bank-based funding and deposit platform.
The national bank charter is the big unlock. It is expected to broaden access to both lending and deposit products, giving Enova more flexibility in how it funds loans and how it serves customers across the country.
Enova’s Funding Costs Could Improve With DepositsA key trend implication is the potential reset in Enova’s funding stack. Grasshopper’s deposit base is estimated to be 300–400 basis points cheaper than Enova’s existing securitization funding, which could materially change unit economics.
Lower funding costs typically allow a lender to price more competitively while maintaining returns, or to hold pricing steady and expand margins. Either way, cheaper deposits can improve balance-sheet flexibility by reducing reliance on capital markets timing and securitization conditions.
ENVA’s Synergy Targets Are Material in Two YearsManagement’s synergy targets are sizable relative to the scale of the move. The expectation is for revenue synergies of $175–$230 million within two years after close, with adjusted earnings per share accretion expected to exceed 15% in year one and rise beyond 25% as synergies mature.
Those figures create a clear “potential if executed” setup. The market will likely weigh these targets against integration complexity, the pace of deposit growth, and the time it takes to translate expanded product capacity into measurable originations and revenue.
ENVA’s Timeline and Approval Risk Are Part of the StoryThe timeline is not fully in management’s control. The deal is subject to regulatory approvals, including the Office of the Comptroller of the Currency and the Federal Reserve, as well as Grasshopper shareholder approval.
Closing is anticipated in the second half of 2026. Until those milestones are cleared, the market may treat synergy targets and funding benefits as probabilistic rather than assured, especially given the centrality of the charter and deposit platform to the strategic case.
The deal also comes with an investment phase, and the early signs are already visible. Acquisition-related expenses showed up in the first quarter of 2026, including $2.7 million of pre-tax costs tied to the transaction.
Expense ratios also remain elevated, with marketing, operations, technology, and general and administrative expense guidance for the second quarter signaling continued intensity. The core question for investors is whether this spending ultimately converts into sustained deposit traction, product expansion, and measurable synergy capture.
Enova’s What-To-Watch List as the Deal ProgressesThe first checkpoint is regulatory progress and the sequencing of required approvals. Clear milestones, timely filings, and transparent updates can reduce uncertainty around the closing window.
Next is evidence of funding mix improvement. Investors will want to see whether deposits begin to play a larger role and whether the implied 300–400 basis point cost advantage translates into reported funding costs and stronger lending economics.
Originations will be another key indicator, particularly as the product suite expands and the company tests broader reach across states and customer segments. Finally, watch whether expense intensity moderates as integration work stabilizes and whether early revenue synergies begin to show up in performance, validating the longer-term earnings accretion pathway.
ENVA’s Zacks Rank and Price PerformanceENVA carries a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Enova shares gained 74.4% in the past year compared with the industry’s rise of 34.7%.
Price Performance
Image Source: Zacks Investment Research
ENVA Peers Efforts to Expand InorganicallyCapital One’s (COF - Free Report) opportunistic buyouts over the years have been driving its revenues. In January 2026, it announced a deal to acquire Brex for $5.15 billion, which is expected to be closed in the middle of 2026. In May 2025, COF acquired Discover Financial in an all-stock transaction valued at $35.3 billion, reshaping the landscape of the credit card industry, creating a behemoth and unlocking substantial value for shareholders (the deal is expected to be more than 15% accretive to adjusted EPS by 2027).
Sallie Mae (SLM - Free Report) has made efforts to expand its business operations on the back of investments in varied product offerings and inorganic activities. In 2023, the company acquired several vital assets, technology, intellectual property, and the experienced staff of Scholly, a scholarship publishing and servicing platform. In 2022, Sallie Mae closed the deal with Epic Research LLC to acquire a digital marketing and education solutions company, Nitro College. Such inorganic moves are likely to aid SLM in becoming a holistic education solutions provider for students and drive loan originations for the company.
Complaint alleges Sallie Mae established a plan and scheme to circumvent federal data-privacy protections related to the use and disclosure of student data, and retaliated against the executive who reported it.
, /PRNewswire/ -- Christopher Gray, founder of scholarship-matching platform Scholly and current CEO of AI test-prep platform Path, has filed a whistleblower and data-privacy lawsuit against SLM Corporation (NASDAQ: SLM), the parent company of Sallie Mae Bank, and its non-bank subsidiary SLM Education Services, LLC, in Delaware Superior Court. The complaint alleges that Sallie Mae built a deliberate corporate structure to sell the personal data of millions of students, including minors, while evading the federal privacy law that would otherwise prohibit it.
Two SLM websites comparison At the heart of the complaint is a two-entity structure. Salliemae.com is operated by Sallie Mae Bank, a federally regulated, FDIC-insured bank covered by the Gramm-Leach-Bliley Act (GLBA), which prohibits banks from selling nonpublic personal financial information. Sallie.com website is almost identical, holds the same branding, including logo and brand colors, but is operated by a different entity: SLM Education Services, LLC, a non-bank subsidiary not subject to those restrictions. Sallie.com's publicly posted privacy policy states, in the company's own words, that it "sells" and "shares" personal information, including sensitive personal information, for advertising and marketing purposes.
The complaint alleges this architecture was designed to circumvent GLBA, which prohibits a financial institution from disclosing nonpublic personal information to nonaffiliated third parties, directly or through any affiliate.
The impact of this scheme reaches millions of users. On March 4, 2026, Sallie Mae publicly launched Backpack Media, an advertising platform operated through SLM Education Services. Its marketing materials offer brands access to an audience of "8.5 million students, families, and young professionals", most of them are minors looking for student loans and scholarships.
Gray has also filed a formal whistleblower complaint with the U.S. Securities and Exchange Commission's Office of the Whistleblower regarding the matters at issue in the litigation. By making these filings, Gray is protected under the anti-retaliation provisions of the Delaware Whistleblowers' Protection Act and Section 21F of the Securities Exchange Act, as amended by the Dodd-Frank Act. Any further retaliatory conduct by Sallie Mae, including continued pressure on Gray, his current company, or his former Scholly shareholders, is itself actionable under both statutes and subject to additional federal and state penalties.
Sallie Mae acquired Scholly in June 2023, and Gray joined the company as a senior executive. According to the complaint, he discovered the data-monetization plan and raised concerns internally. Executives knew Gray was planning to bring those concerns directly to Sallie Mae CEO Jon Witter at a breakfast meeting scheduled through the CEO's office. He was abruptly terminated before that meeting could take place.
After the termination, Sallie Mae's Chief Legal Officer, Nicholas Jafarieh, met with Gray's counsel. According to the complaint, he admitted the company "handled [Gray's] termination wrong." In the same meeting, he warned that Gray did not "want to make an enemy" of the company.
As alleged in the complaint, in the lead-up to the filing, Sallie Mae made repeated threats to compel Gray's claims into private, confidential arbitration to keep the allegations off the public record. When that pressure failed and Gray filed his complaint in open court on April 13, the company escalated in a different direction. Its outside counsel sent a demand letter to Gray's former Scholly shareholders and explicitly tied a threat of financial clawback to Gray's communications with the press.
"I built Scholly to help students access money for college, not to help a bank sell their personal information to advertisers," Gray said. "When I saw what was happening inside Sallie Mae, I reported it. What followed was a campaign to keep the matter out of public view — their response was to fire me, threaten me, and try to silence me. Sallie Mae borrowers and employees are typically bound by mandatory arbitration agreements that keep disputes out of open court. This case is different as I'm protected, I can speak and I will."
The complaint is a matter of public record in Delaware Superior Court. A copy is available upon request.
Christopher Gray is the founder of Scholly, a scholarship-matching platform that grew to 5 million users and helped students access more than $100 million in scholarship funding. Gray appeared on ABC's Shark Tank in 2015 and 2024 and was named to the Forbes 30 Under 30 list. Originally from Birmingham, Alabama, Gray won approximately $1 million in scholarships to attend college which inspired him to create Scholly. He is currently the founder and CEO of Path, an AI-powered test-prep platform for K-12 students. He is represented in this matter by Allen and Associates.
Path is an AI-powered test prep platform founded by Christopher Gray. The platform offers AI-driven test preparation for K-12 state exams, college admissions, and professional certifications.
Grant from The Sallie Mae Fund Will Expand Scholarship Access for Military Families
NEWARK, Del.--(BUSINESS WIRE)--In recognition of Military Appreciation Month, The Sallie Mae Fund today announced a contribution of $50,000 to Folds of Honor, a nonprofit organization dedicated to providing educational scholarships to the spouses and children of America’s fallen and disabled service members.
“The generosity of partners like Sallie Mae is what makes our mission possible,” said Allen Wronowski, regional impact officer, Folds of Honor. “Every scholarship we award is a direct result of organizations that believe, as we do, that children and spouses of our nation’s heroes deserve the chance to succeed. This contribution will make a real and lasting difference in the lives of military families across America.”
Since 2014, The Sallie Mae Fund has contributed a total of $635,000 to Folds of Honor, funding more than 100 scholarships for military families pursuing higher education nationwide.
“Our mission is grounded in expanding access to higher education and supporting student success,” said Nic Jafarieh, executive vice president, Sallie Mae. “The important work of Folds of Honor not only opens doors to higher education for deserving students but also serves as a powerful tribute to the servicemembers who made the ultimate sacrifice for our country. We are proud to continue to support those efforts.”
Sallie Mae’s commitment to veterans and service members extends beyond charitable giving. During Military Appreciation Month this May, team members will volunteer their time to support the Wilmington, Del. VA Medical Center. The company also employs a dedicated team of specially trained customer service advisors who work exclusively with military families to provide personalized support.
In addition, Sallie Mae offers free tools, resources, and access to scholarships to support veterans and military-connected students as they plan and pay for higher education.
Learn more at www.salliemae.com.
Sallie Mae (Nasdaq: SLM) believes education and life-long learning, in all forms, help people achieve great things. As the leader in private student lending, we provide financing and know-how to support access to college and offer products and resources to help customers make new goals and experiences, beyond college, happen. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.
Shares of Sallie Mae (SLM - Free Report) have gained 5.8% over the past four weeks to close the last trading session at $22.99, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $28.82 indicates a potential upside of 25.4%.
The mean estimate comprises 11 short-term price targets with a standard deviation of $3.66. While the lowest estimate of $22.00 indicates a 4.3% decline from the current price level, the most optimistic analyst expects the stock to surge 52.2% to reach $35.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
But, for SLM, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why SLM Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, five estimates have moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 14%.
Moreover, SLM currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much SLM could gain, the direction of price movement it implies does appear to be a good guide.
NEWARK, Del.--(BUSINESS WIRE)--Sallie Mae® (Nasdaq: SLM), formally SLM Corporation (“SLM” or the “Company”) announced today the commencement of a cash tender offer (the “Tender Offer”) to purchase any and all of its outstanding 3.125% senior notes (the “Notes”) upon the terms and conditions described in the Company’s Offer to Purchase, dated May 6, 2026 (the “Offer to Purchase”).
Certain information regarding the Notes and the U.S. Treasury Reference Security, the Bloomberg reference page and the fixed spread is set forth in the table below.
Title of
Security
CUSIP/ISIN
Number
Principal
Amount
Outstanding
U.S. Treasury
Reference
Security
Bloomberg
Reference
Page
Fixed
Spread
(basis
points)
3.125% Senior
Notes due
2026(1)
78442P GE0 /
US78442PGE07
$500,000,000
4.125% U.S. Treasury due October 31, 2026
FIT 3
+25
The “Purchase Price” for each $1,000 principal amount of the Notes validly tendered, and not validly withdrawn, and accepted for purchase pursuant to the Tender Offer will be determined in the manner described in the Offer to Purchase by reference to the fixed spread specified above plus the yield based on the bid-side price of the U.S. Treasury Reference Security specified above, as quoted on the Bloomberg Bond Trader FIT 3 series of pages, at 2 p.m. New York City time, on May 12, 2026, the date on which the Tender Offer is currently scheduled to expire. The Purchase Price will be based on a yield to Nov. 2, 2026, the maturity date of the Notes, and assuming the Notes mature on such date, as described in the Offer to Purchase.
In addition to the Purchase Price, holders whose Notes are purchased pursuant to the Tender Offer will also receive accrued and unpaid interest thereon from the last interest payment date up to, but not including, the initial date on which the Company makes payment for such Notes, which date is currently expected to be May 15, 2026, assuming that the Tender Offer is not extended or earlier terminated.
The Tender Offer is being made pursuant to the terms and conditions contained in the Offer to Purchase and Notice of Guaranteed Delivery, copies of which may be obtained from D.F. King & Co., Inc., the tender agent and information agent for the Tender Offer, by calling (888) 626-0988 or, for banks and brokers, (212) 269-5550. Copies of the Offer to Purchase and Notice of Guaranteed Delivery are also available at the following web address: www.dfking.com/slm; or by requesting via email at [email protected].
The Tender Offer will expire at 5 p.m., New York City time, on May 12, 2026, unless extended or earlier terminated (such time and date, as the same may be extended, the “Expiration Time”). Tendered Notes may be withdrawn at any time before the Expiration Time. Holders of Notes must validly tender and not validly withdraw their Notes (or comply with the procedures for guaranteed delivery) before the Expiration Time to be eligible to receive the consideration for their Notes.
Settlement for all Notes tendered prior to the Expiration Time or pursuant to a Notice of Guaranteed Delivery is expected to be May 15, 2026, assuming that the Tender Offer is not extended or earlier terminated.
There can be no assurance that any Notes will be purchased. The Tender Offer is being made in connection with a contemporaneous offering of senior debt securities by the Company on terms and conditions (including, but not limited to, the amount of proceeds raised in such offering) satisfactory to the Company (the “New Notes Offering”). The Tender Offer is not conditioned upon any minimum amount of Notes being tendered. The Tender Offer may be amended, extended, terminated or withdrawn. Proceeds from the New Notes Offering will be used to repurchase Notes pursuant to the Tender Offer. The Tender Offer is conditioned upon, among other things, the completion of the New Notes Offering, and no assurance can be given that the New Notes Offering will be completed.
The Company expects to repay any Notes not tendered and accepted for purchase pursuant to the Tender Offer at their maturity. Subject to the completion of the New Notes Offering and the consummation of the Tender Offer, the Company expects to deposit with Deutsche Bank National Trust Company, as trustee funds sufficient to repay at their maturity the Notes not tendered and accepted for purchase pursuant to the Tender Offer, and thereby satisfy and discharge the indenture governing the Notes, as it applies to the Notes, shortly after the Settlement Date. The Company has retained J.P. Morgan Securities LLC to serve as the exclusive Dealer Manager for the Tender Offer. Questions regarding the terms of the Tender Offer may be directed to J.P. Morgan Securities LLC, Liability Management Desk, U.S. toll free at (866) 834-4666 or collect at (212) 834-7489.
This press release is neither an offer to purchase nor a solicitation of an offer to sell any Notes in the Tender Offer and does not constitute a notice of redemption for the Notes.
Sallie Mae (Nasdaq: SLM) believes education and life-long learning, in all forms, help people achieve great things. As the leader in private student lending, we provide financing and know-how to support access to college and offer products and resources to help customers make new goals and experiences, beyond college, happen. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate,” “plan,” “project,” “could,” “should,” “would,” “continue,” “seek,” “target,” “guidance,” “outlook,” “if current trends continue,” “optimistic,” “forecast,” “medium term,” “long term,” and other similar words. Such statements include, but are not limited to, statements about SLM’s (together with its subsidiaries, “Sallie Mae”) plans, objectives, expectations, intentions, estimates and strategies for the future, and other statements that are not historical facts. These forward-looking statements are based on Sallie Mae’s current objectives, beliefs and expectations, and they are subject to significant risks and uncertainties that may cause actual results and financial position and timing of certain events to differ materially from the information in the forward-looking statements. These risks and uncertainties include, among others, those set forth in Item 1A. “Risk Factors” and elsewhere in the SLM’s most recently filed Annual Report on Form 10-K, and other risks and uncertainties discussed from time to time in the SLM’s other filings with the Securities and Exchange Commission. Additionally, there may be other factors of which Sallie Mae is not currently aware that may affect matters discussed in the forward-looking statements and may also cause actual results to differ materially from those discussed. Sallie Mae does not assume any obligation to publicly update, revise, or supplement any forward-looking statement to reflect actual results, changes in assumptions or changes in other factors affecting these forward-looking statements that occur after the date such statements were made. Any forward-looking statements speak only as of the date hereof or as of the dates indicated in the statement. In light of these risks, uncertainties, and assumptions, you should not put undue reliance on any forward-looking statements herein.
NEWARK, Del.--(BUSINESS WIRE)--Sallie Mae® (Nasdaq: SLM), formally SLM Corporation, announced that it priced its public offering of $500 million aggregate principal amount of 6.495% Fixed-to-Floating Rate Senior Notes due 2032 (the “Senior Notes”) at par.
J.P. Morgan Securities LLC and Barclays Capital Inc. are acting as joint book-running managers. BofA Securities, Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, and RBC Capital Markets, LLC are acting as co-managers. The Senior Notes are expected to be issued on May 15, 2026, subject to customary closing conditions. SLM Corporation intends to use the net proceeds from the offering to fund the purchase of up to $500 million in aggregate principal amount of its 3.125% notes due 2026 (“2026 Notes”) accepted for purchase pursuant to the tender offer announced earlier today (“Tender Offer”), together with accrued and unpaid interest, and the payment of related fees and expenses. To the extent any net proceeds remain after the consummation of the Tender Offer, SLM Corporation intends to use such net proceeds to repay at their maturity any 2026 Notes that remain outstanding after the Tender Offer.
SLM Corporation has filed a registration statement (including a base prospectus and preliminary prospectus supplement dated May 6, 2026 (“Preliminary Prospectus Supplement”)) with the SEC for the Senior Notes offering, which registration statement became automatically effective upon filing on July 31, 2024. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, any underwriter or any dealer participating in the offering will arrange to send you the base prospectus and Preliminary Prospectus Supplement if you request it by calling J.P. Morgan Securities LLC at 1-212-834-4533 or by calling Barclays Capital Inc. at 1-888-603-5847.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering of the Senior Notes may be made only by means of a prospectus supplement and accompanying base prospectus relating to this offering.
Sallie Mae (Nasdaq: SLM) believes education and life-long learning, in all forms, help people achieve great things. As the leader in private student lending, we provide financing and know-how to support access to college and offer products and resources to help customers make new goals and experiences, beyond college, happen. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate,” “plan,” “project,” “could,” “should,” “would,” “continue,” “seek,” “target,” “guidance,” “outlook,” “if current trends continue,” “optimistic,” “forecast,” “medium term,” “long term,” and other similar words. Such statements include, but are not limited to, statements about SLM Corporation’s (together with its subsidiaries, “Sallie Mae”) plans, objectives, expectations, intentions, estimates and strategies for the future, and other statements that are not historical facts. These forward-looking statements are based on Sallie Mae’s current objectives, beliefs and expectations, and they are subject to significant risks and uncertainties that may cause actual results and financial position and timing of certain events to differ materially from the information in the forward-looking statements. These risks and uncertainties include, among others, those set forth in Item 1A. “Risk Factors” and elsewhere in the SLM Corporation’s most recently filed Annual Report on Form 10-K, and other risks and uncertainties discussed from time to time in the SLM Corporation’s other filings with the Securities and Exchange Commission. Additionally, there may be other factors of which Sallie Mae is not currently aware that may affect matters discussed in the forward-looking statements and may also cause actual results to differ materially from those discussed. Sallie Mae does not assume any obligation to publicly update, revise, or supplement any forward-looking statement to reflect actual results, changes in assumptions or changes in other factors affecting these forward-looking statements that occur after the date such statements were made. Any forward-looking statements speak only as of the date hereof or as of the dates indicated in the statement. In light of these risks, uncertainties, and assumptions, you should not put undue reliance on any forward-looking statements herein.
Company Offers Competitive Interest Rates, No Origination Fees, and Multiple Repayment Options Ahead of Changes to Federal Student Loan Program
Expanded Access to Graduate and Law Loans Follow Recent Enhancements to Medical School and Dental School Financing Options
NEWARK, Del.--(BUSINESS WIRE)--Sallie Mae (Nasdaq: SLM) today announced expanded access to responsible financing for students pursuing graduate and law degrees. The Sallie Mae ® Graduate Loan and Sallie Mae ® Law School Loan offer competitive interest rates, no origination fees, and multiple repayment options during school, and can cover up to 100% of the school-certified cost of attendance.
“Students pursuing advanced degrees need a financing partner they can rely on, especially as they navigate changes to federal student loan programs,” said Patrick Freeman, Senior Vice President, Sallie Mae.
Share Graduate and professional programs vary in cost, length, and structure, and many students rely on borrowing to fill gaps after scholarships, grants, and federal financial aid. Sallie Mae has made enhancements so that more qualified students may access funding and designed its graduate and law school loans to help students cover school costs, including tuition, fees, and living expenses. These enhancements build on Sallie Mae’s market-leading graduate-degree loan options, including recent updates to its Medical School Loan and Dental School Loan.
Graduate and Law School Loans Designed for Advanced Degree Programs and Timelines
Sallie Mae’s Graduate Loan and Law School Loan share core features, including:
Ability to prequalify with no impact on credit scores, allowing students to check eligibility and receive an estimated rate before applying. Repayment flexibility, including up to 12 months of interest-only payments, allowing students to ease into repayment as they transition into their careers. Cosigner release option, allowing qualified borrowers to apply for cosigner release after meeting graduation, on-time payment, and other eligibility requirements. Dedicated graduate and professional student support teams, with experience supporting advanced degree timelines and requirements. 100% U.S.-based loan servicing, providing support from application through repayment. Graduate Loan Options for a Range of Programs
The Sallie Mae Graduate Loan supports students pursuing master’s, doctoral, and professional degrees, as well as select graduate certificate programs at participating schools. The loan offers a six‑month grace period after graduation and up to 48 months of deferment for qualifying internships, residencies, or fellowships, giving students time and flexibility before full payments begin.
Law School Loan Features Designed for Legal Education and Bar Preparation
The Sallie Mae Law School Loan is built specifically for the law school journey, recognizing the unique costs and career timelines law students face, from coursework and clerkships to bar exam preparation. Repayment terms include a nine‑month grace period after graduation and up to 48 months of deferment for qualifying clerkships or internships. Qualifying law students may also apply for the Sallie Mae® Bar Study Loan to help cover bar exam preparation costs.
“Students pursuing advanced degrees need a financing partner they can rely on, especially as they navigate changes to federal student loan programs,” said Patrick Freeman, Senior Vice President, Sallie Mae. “We’ve long been a trusted name in responsible student financing, and we’re well prepared to support more students with options to help them confidently access and complete their graduate education programs.”
How Sallie Mae Supports Graduate Student Success Beyond Financing
In addition to responsible private student loans and savings products, Sallie Mae offers free tools and guidance through Sallie to help students and families navigate the higher education journey with confidence. Sallie represents the broader brand that brings those financial products together with a growing set of resources to support students and families at every step, from planning and saving to paying for school, including:
The $5,000 Graduate School No Essay Scholarship, awarded quarterly through a short application. Scholly ® Scholarship Search, which helps students find and apply for scholarships aligned with their background and goals, including nearly 2,000 scholarships for graduate students. The Bridging the Dream Scholarship for Graduate Students, available June 1 and offered through The Sallie Mae Fund, which will award 20 scholarships this year worth $200,000. To learn more about Sallie Mae’s graduate and professional school loan options, visit SallieMae.com.
Sallie Mae (Nasdaq: SLM) believes education and life-long learning, in all forms, help people achieve great things. As the leader in private student lending, we provide financing and know-how to support access to college and offer products and resources to help customers make new goals and experiences, beyond college, happen. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.
NEWARK, Del.--(BUSINESS WIRE)--Sallie Mae® (Nasdaq: SLM), formally SLM Corporation (“SLM” or the “Company”), announced today the pricing terms of its previously announced cash tender offer (the “Tender Offer”) to purchase any and all of its outstanding 3.125% senior notes (the “Notes”) upon the terms and conditions described in the Company’s Offer to Purchase, dated May 6, 2026 (the “Offer to Purchase”).
Set forth in the table below is the purchase price (the “Purchase Price”) for the Notes, as calculated at 2 p.m., New York City time, on May 12, 2026, in accordance with the Offer to Purchase:
Title of Security
CUSIP/ISIN Number
Principal Amount Outstanding
U.S. Treasury
Reference Security
Bloomberg Reference Page
Reference Yield
Fixed Spread (basis points)
Purchase Price
3.125% Senior Notes due 2026(1)
78442P GE0 / US78442PGE07
$500,000,000
4.125% U.S. Treasury due October 31, 2026
FIT 3
3.786%
+25
$995.83
In addition to the Purchase Price, holders whose Notes are purchased pursuant to the Tender Offer will also receive accrued and unpaid interest thereon from the last interest payment date up to, but not including, the settlement date on which the Company makes payment for such Notes, which date is currently expected to be May 15, 2026, assuming that the Tender Offer is not extended or earlier terminated.
The Tender Offer is being made pursuant to the terms and conditions contained in the Offer to Purchase and Notice of Guaranteed Delivery, copies of which may be obtained from D.F. King & Co., Inc., the tender agent and information agent for the Tender Offer, by calling (888) 626-0988 or, for banks and brokers, (212) 269-5550. Copies of the Offer to Purchase and Notice of Guaranteed Delivery are also available at the following web address: www.dfking.com/slm; or by requesting via email at [email protected].
The Tender Offer will expire at 5 p.m., New York City time, on May 12, 2026, unless extended or earlier terminated (such time and date, as the same may be extended, the “Expiration Time”). Tendered Notes may be withdrawn at any time before the Expiration Time. Holders of Notes must validly tender and not validly withdraw their Notes (or comply with the procedures for guaranteed delivery) before the Expiration Time to be eligible to receive the consideration for their Notes.
Settlement for all Notes tendered prior to the Expiration Time or pursuant to a Notice of Guaranteed Delivery is expected to be May 15, 2026, assuming that the Tender Offer is not extended or earlier terminated.
There can be no assurance that any Notes will be purchased. The Tender Offer is being made in connection with a contemporaneous offering of senior debt securities by the Company on terms and conditions (including, but not limited to, the amount of proceeds raised in such offering) satisfactory to the Company (the “New Notes Offering”). The Tender Offer is not conditioned upon any minimum amount of Notes being tendered. The Tender Offer may be amended, extended, terminated or withdrawn. Proceeds from the New Notes Offering will be used to repurchase Notes pursuant to the Tender Offer. The Tender Offer is conditioned upon, among other things, the completion of the New Notes Offering, and no assurance can be given that the New Notes Offering will be completed.
The Company expects to repay any Notes not tendered and accepted for purchase pursuant to the Tender Offer at their maturity. Subject to the completion of the New Notes Offering and the consummation of the Tender Offer, the Company expects to deposit with Deutsche Bank National Trust Company, as trustee funds sufficient to repay at their maturity the Notes not tendered and accepted for purchase pursuant to the Tender Offer, and thereby satisfy and discharge the indenture governing the Notes, as it applies to the Notes, shortly after the Settlement Date. The Company has retained J.P. Morgan Securities LLC to serve as the exclusive Dealer Manager for the Tender Offer. Questions regarding the terms of the Tender Offer may be directed to J.P. Morgan Securities LLC, Liability Management Desk, U.S. toll free at (866) 834-4666 or collect at (212) 834-7489.
This press release is neither an offer to purchase nor a solicitation of an offer to sell any Notes in the Tender Offer and does not constitute a notice of redemption for the Notes.
Sallie Mae (Nasdaq: SLM) believes education and life-long learning, in all forms, help people achieve great things. As the leader in private student lending, we provide financing and know-how to support access to college and offer products and resources to help customers make new goals and experiences, beyond college, happen. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate,” “plan,” “project,” “could,” “should,” “would,” “continue,” “seek,” “target,” “guidance,” “outlook,” “if current trends continue,” “optimistic,” “forecast,” “medium term,” “long term,” and other similar words. Such statements include, but are not limited to, statements about SLM’s (together with its subsidiaries, “Sallie Mae”) plans, objectives, expectations, intentions, estimates and strategies for the future, and other statements that are not historical facts. These forward-looking statements are based on Sallie Mae’s current objectives, beliefs and expectations, and they are subject to significant risks and uncertainties that may cause actual results and financial position and timing of certain events to differ materially from the information in the forward-looking statements. These risks and uncertainties include, among others, those set forth in Item 1A. “Risk Factors” and elsewhere in the SLM’s most recently filed Annual Report on Form 10-K, and other risks and uncertainties discussed from time to time in the SLM’s other filings with the Securities and Exchange Commission. Additionally, there may be other factors of which Sallie Mae is not currently aware that may affect matters discussed in the forward-looking statements and may also cause actual results to differ materially from those discussed. Sallie Mae does not assume any obligation to publicly update, revise, or supplement any forward-looking statement to reflect actual results, changes in assumptions or changes in other factors affecting these forward-looking statements that occur after the date such statements were made. Any forward-looking statements speak only as of the date hereof or as of the dates indicated in the statement. In light of these risks, uncertainties, and assumptions, you should not put undue reliance on any forward-looking statements herein.
NEWARK, Del.--(BUSINESS WIRE)--Sallie Mae® (Nasdaq: SLM), formally SLM Corporation (“SLM” or the “Company”), announced today the final results and expiration of its previously announced cash tender offer (the “Tender Offer”) to purchase any and all of its outstanding 3.125% senior notes (the “Notes”) upon the terms and conditions described in the Company’s Offer to Purchase, dated May 6, 2026 (the “Offer to Purchase”). Capitalized terms used and not defined herein shall have the meaning ascribed to them in the Offer to Purchase.
As of 5 p.m., New York City time, on May 12, 2026, the Expiration Time for the Tender Offer, the Company had received tenders for an aggregate principal amount of $448,412,000 of Notes outstanding, or 89.68% of the aggregate principal amount of Notes outstanding. These amounts exclude $226,000 aggregate principal amount of Notes that remain subject to the guaranteed delivery procedures described in the Offer to Purchase and the Notice of Guaranteed Delivery.
In accordance with the terms of the Tender Offer, the Company will pay the Purchase Price for the Notes validly tendered prior to the Expiration Time or pursuant to the Notice of Guaranteed Delivery on May 15, 2026 (the “Settlement Date”). The Purchase Price for the Notes is $995.83 for each $1,000 principal amount of Notes validly tendered and accepted for purchase pursuant to the Tender Offer, plus accrued and unpaid interest on such Notes from the last interest payment date up to, but not including, the Settlement Date. For the avoidance of doubt, interest on the Notes will cease to accrue on the Settlement Date for all Notes accepted in the Tender Offer. All Notes purchased on the Settlement Date will subsequently be cancelled.
There can be no assurance that any Notes will be purchased. The Tender Offer is being made in connection with a contemporaneous offering of senior debt securities by the Company on terms and conditions (including, but not limited to, the amount of proceeds raised in such offering) satisfactory to the Company (the “New Notes Offering”). The Tender Offer is not conditioned upon any minimum amount of Notes being tendered. The Tender Offer may be amended, extended, terminated or withdrawn. Proceeds from the New Notes Offering will be used to repurchase Notes pursuant to the Tender Offer. The Tender Offer is conditioned upon, among other things, the completion of the New Notes Offering, and no assurance can be given that the New Notes Offering will be completed.
The Company expects to repay any Notes not tendered and accepted for purchase pursuant to the Tender Offer at their maturity. Subject to the completion of the New Notes Offering and the consummation of the Tender Offer, the Company expects to deposit with Deutsche Bank National Trust Company, as trustee funds sufficient to repay at their maturity the Notes not tendered and accepted for purchase pursuant to the Tender Offer, and thereby satisfy and discharge the indenture governing the Notes, as it applies to the Notes, shortly after the Settlement Date. The Company has retained J.P. Morgan Securities LLC to serve as the exclusive Dealer Manager for the Tender Offer. Questions regarding the terms of the Tender Offer may be directed to J.P. Morgan Securities LLC, Liability Management Desk, U.S. toll free at (866) 834-4666 or collect at (212) 834-7489.
This press release is neither an offer to purchase nor a solicitation of an offer to sell any Notes in the Tender Offer and does not constitute a notice of redemption for the Notes.
Sallie Mae (Nasdaq: SLM) believes education and life-long learning, in all forms, help people achieve great things. As the leader in private student lending, we provide financing and know-how to support access to college and offer products and resources to help customers make new goals and experiences, beyond college, happen. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate,” “plan,” “project,” “could,” “should,” “would,” “continue,” “seek,” “target,” “guidance,” “outlook,” “if current trends continue,” “optimistic,” “forecast,” “medium term,” “long term,” and other similar words. Such statements include, but are not limited to, statements about SLM’s (together with its subsidiaries, “Sallie Mae”) plans, objectives, expectations, intentions, estimates and strategies for the future, and other statements that are not historical facts. These forward-looking statements are based on Sallie Mae’s current objectives, beliefs and expectations, and they are subject to significant risks and uncertainties that may cause actual results and financial position and timing of certain events to differ materially from the information in the forward-looking statements. These risks and uncertainties include, among others, those set forth in Item 1A. “Risk Factors” and elsewhere in the SLM’s most recently filed Annual Report on Form 10-K, and other risks and uncertainties discussed from time to time in the SLM’s other filings with the Securities and Exchange Commission. Additionally, there may be other factors of which Sallie Mae is not currently aware that may affect matters discussed in the forward-looking statements and may also cause actual results to differ materially from those discussed. Sallie Mae does not assume any obligation to publicly update, revise, or supplement any forward-looking statement to reflect actual results, changes in assumptions or changes in other factors affecting these forward-looking statements that occur after the date such statements were made. Any forward-looking statements speak only as of the date hereof or as of the dates indicated in the statement. In light of these risks, uncertainties, and assumptions, you should not put undue reliance on any forward-looking statements herein.
NEWARK, Del.--(BUSINESS WIRE)--Sallie Mae® (Nasdaq: SLM), formally SLM Corporation, today announced Co-President and Chief Financial Officer Pete Graham will speak at the 2026 Morgan Stanley US Financials Conference on Wednesday, June 10, at 7:30 a.m. ET.
A live audio webcast and replay will be available at SallieMae.com/investors.
Sallie Mae (Nasdaq: SLM) believes education and life-long learning, in all forms, help people achieve great things. As the leader in private student lending, we provide financing and know-how to support access to college and offer products and resources to help customers make new goals and experiences, beyond college, happen. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.
Sallie Mae® (Nasdaq: SLM), formally SLM Corporation, today announced Co-President and Chief Financial Officer Pete Graham will speak at the 2026 Morgan Stanley US Financials Conference on Wednesday, June 10, at 7:30 a.m. ET.
A live audio webcast and replay will be available at SallieMae.com/investors.
Sallie Mae (Nasdaq: SLM) believes education and life-long learning, in all forms, help people achieve great things. As the leader in private student lending, we provide financing and know-how to support access to college and offer products and resources to help customers make new goals and experiences, beyond college, happen. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.
Category: Corporate and Financial
View source version on businesswire.com: https://www.businesswire.com/news/home/20260529047762/en/
CEO Buys, CFO Buys: Stocks that are bought by their CEO/CFOs. Insider Cluster Buys: Stocks that multiple company officers and directors have bought. Double Buys: Companies that both Gurus and Insiders are buying Triple Buys: Companies that both Gurus and Insiders are buying, and Company is buying back.
The Sallie Mae Fund today announced it is expanding its Bridging the Dream Scholarship for Graduate Students. The Sallie Mae Fund is doubling the number of scholarships available, now offering 20 scholarships of up to $10,000 each to help students complete their graduate program across fields including nursing, healthcare, law, and education.
Eligible applicants must be enrolled in or accepted to an accredited graduate or professional degree program, demonstrate financial need, and show a commitment to making a positive impact in their communities. The Bridging the Dream Scholarship for Graduate Students is administered by Thurgood Marshall College Fund (TMCF) and the application period runs through July 17, 2026.
“Receiving the Bridging the Dream Scholarship has been life-changing,” said Bridging the Dream Scholarship recipient Kendrick Claxton, a doctoral candidate in Educational Leadership at Arkansas State University-Beebe. “This support helped me access the resources I need to succeed and focus more on my studies instead of financial stress. It’s not just a scholarship—it’s a bridge to opportunities I might not have had otherwise.”
“As more students pursue graduate education to advance their careers and meet critical workforce needs, access to scholarships becomes even more important,” said Nic Jafarieh, Executive Vice President, Sallie Mae. “Our expanded Bridging the Dream Scholarship for Graduate Students will help more students access advanced education, stay on track, and complete their degrees.”
The Sallie Mae Fund is also offering 50 Completing the Dream Scholarships which provide up to $2,500 to eligible students on track to complete their program during the academic year 2026-2027 at a two- or four-year college, career training, or other post-secondary education program. Since 2021, the program has awarded nearly 1,000 scholarships to help students navigate unplanned expenses and complete their higher education.
“Through our work with The Sallie Mae Fund, we’re expanding access to scholarship opportunities for students who need it most,” said Dr. Harry L. Williams, President and CEO of Thurgood Marshall College Fund. “These scholarship programs provide the support and resources that help students advance their education and support their communities.”
Since 2021, The Sallie Mae Fund has awarded nearly $5 million in scholarships to help students access and complete higher education. In addition to the Bridging the Dream Scholarship Program, Sallie Mae offers free tools and resources to help families plan and pay for college, including Scholly® Scholarship Search, which also provides access to nearly 2,000 scholarships for graduate students.
The application window for the Bridging the Dream Scholarship for Graduate Students and the Completing the Dream Scholarship is open through July 17, 2026. Apply today at SallieMae.com.
Sallie Mae (Nasdaq: SLM) believes education and life-long learning, in all forms, help people achieve great things. As the leader in private student lending, we provide financing and know-how to support access to college and offer products and resources to help customers make new goals and experiences, beyond college, happen. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.
Category: Community and Philanthropy
View source version on businesswire.com: https://www.businesswire.com/news/home/20260602936047/en/
Twenty Scholarships Worth Up to $200,000 Will be Awarded to Students Pursuing Advanced Degrees Through The Bridging the Dream Scholarship for Graduate Students
The Sallie Mae Fund Also Offering Scholarships to Help Undergraduate Students Complete Their Education Through its Completing the Dream Scholarship Program
NEWARK, Del.--(BUSINESS WIRE)--The Sallie Mae Fund today announced it is expanding its Bridging the Dream Scholarship for Graduate Students. The Sallie Mae Fund is doubling the number of scholarships available, now offering 20 scholarships of up to $10,000 each to help students complete their graduate program across fields including nursing, healthcare, law, and education.
“As more students pursue graduate education to advance their careers and meet critical workforce needs, access to scholarships becomes even more important,” said Nic Jafarieh, Executive Vice President, Sallie Mae.
Share Eligible applicants must be enrolled in or accepted to an accredited graduate or professional degree program, demonstrate financial need, and show a commitment to making a positive impact in their communities. The Bridging the Dream Scholarship for Graduate Students is administered by Thurgood Marshall College Fund (TMCF) and the application period runs through July 17, 2026.
“Receiving the Bridging the Dream Scholarship has been life-changing,” said Bridging the Dream Scholarship recipient Kendrick Claxton, a doctoral candidate in Educational Leadership at Arkansas State University-Beebe. “This support helped me access the resources I need to succeed and focus more on my studies instead of financial stress. It’s not just a scholarship—it’s a bridge to opportunities I might not have had otherwise.”
“As more students pursue graduate education to advance their careers and meet critical workforce needs, access to scholarships becomes even more important,” said Nic Jafarieh, Executive Vice President, Sallie Mae. “Our expanded Bridging the Dream Scholarship for Graduate Students will help more students access advanced education, stay on track, and complete their degrees.”
The Sallie Mae Fund is also offering 50 Completing the Dream Scholarships which provide up to $2,500 to eligible students on track to complete their program during the academic year 2026-2027 at a two- or four-year college, career training, or other post-secondary education program. Since 2021, the program has awarded nearly 1,000 scholarships to help students navigate unplanned expenses and complete their higher education.
“Through our work with The Sallie Mae Fund, we’re expanding access to scholarship opportunities for students who need it most,” said Dr. Harry L. Williams, President and CEO of Thurgood Marshall College Fund. “These scholarship programs provide the support and resources that help students advance their education and support their communities.”
Since 2021, The Sallie Mae Fund has awarded nearly $5 million in scholarships to help students access and complete higher education. In addition to the Bridging the Dream Scholarship Program, Sallie Mae offers free tools and resources to help families plan and pay for college, including Scholly® Scholarship Search, which also provides access to nearly 2,000 scholarships for graduate students.
The application window for the Bridging the Dream Scholarship for Graduate Students and the Completing the Dream Scholarship is open through July 17, 2026. Apply today at SallieMae.com.
Sallie Mae (Nasdaq: SLM) believes education and life-long learning, in all forms, help people achieve great things. As the leader in private student lending, we provide financing and know-how to support access to college and offer products and resources to help customers make new goals and experiences, beyond college, happen. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.
On June 10, 2026, SLM Corp SLM shares fell 7.6% to a current price of $21.30. This decline comes amidst a broader trend of volatility, with the stock showing a 52-week range between $17.77 and $34.97.
GF Value™ verdict: The current price is $21.30, which is 12.2% below the GF Value™ of $24.25.GF Score™: 81/100, indicating a strong overall score.Most notable signal: Financial Strength is ranked 3/10, suggesting potential concerns in this area. Is SLM Overvalued or Undervalued? According to the GF Value™, SLM Corp is currently undervalued. With a current price of $21.30, which is 12.2% below the estimated fair value of $24.25, there appears to be a margin of safety for potential investors. The GF Valuation label indicates that the stock is "Modestly Undervalued," presenting an opportunity for investors looking to capitalize on discrepancies between market price and intrinsic value. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
However, while the current valuation may suggest an opportunity, investors should proceed with caution. The company's financial strength rating of 3/10 highlights potential risks that could impact future performance. Therefore, while the stock may be undervalued, the underlying financial strength concerns warrant a careful assessment before making any investment decisions.
How Does SLM's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 5.9x 7.9x Forward P/E 6.8x - SLM's current P/E ratio of 5.9x is significantly below its 5-year median P/E of 7.9x, indicating that the stock is trading at a discount relative to its historical valuation. This analysis aligns with the GF Value™ verdict of being undervalued. The forward P/E of 6.8x also suggests that future earnings expectations are not overly optimistic, supporting the notion that the current price may present a buying opportunity.
What Does SLM's GF Score™ Tell Us? Metric Rating GF Score™ 81 Financial Strength 3/10 Profitability 7/10 Growth 9/10 Valuation 9/10 Momentum 4/10 SLM's GF Score™ of 81/100 reflects strong potential in several areas, particularly in growth (9/10) and valuation (9/10). However, the financial strength score of 3/10 indicates that the company may face challenges in its financial stability. The profitability rank of 7/10 suggests that while the company is generating profits, there may be room for improvement. Overall, the scores highlight a mixed picture: while SLM exhibits strong growth and valuation metrics, the weaknesses in financial strength and momentum could be red flags for cautious investors.
What Are Insiders Doing with SLM Stock? There have been no insider transactions in the last three months for SLM Corp. This lack of activity could suggest that insiders are either content with the current valuation or uncertain about the company's short-term prospects. In general, insider buying can signal confidence in the company's growth trajectory, while selling can indicate a lack of confidence. The absence of recent transactions leaves uncertainty regarding insider sentiment.
What This Means for Investors Based on the analysis, SLM Corp appears to be undervalued according to the GF Value™, with a current price of $21.30 representing a 12.2% discount to its estimated fair value of $24.25. However, potential investors should consider the company's financial strength concerns before making any decisions.
For the complete analysis, visit the SLM Corp SLM stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is SLM's GF Score™?
SLM's GF Score™ is 81/100, indicating a strong overall assessment based on key financial metrics.
Is SLM overvalued or undervalued?
SLM is currently undervalued, with a GF Value™ of $24.25 compared to a market price of $21.30.
What is SLM's P/E ratio?
SLM's P/E ratio is 5.9x, which is 25% below its 5-year median P/E of 7.9x, indicating that the stock is trading at a discount to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways SLM stock dropped 7.6% after management raised concerns about charge-offs.Sallie Mae said that certain debt resolution practices are contributing to elevated charge-offs.SLM is shifting toward internal recovery efforts and enhancing borrower outreach programs. Shares of SLM Corporation (SLM - Free Report) lost 7.6% during yesterday's trading session after management raised concerns about elevated charge-offs and the potential impact on recoveries at the Morgan Stanley U.S. Financials Conference.
Details & Impact of SLM’s Charge-Off and Recovery ConcernsAt the conference, Peter Graham, co-president and chief financial officer, stated that a small segment of borrowers with strong credit profiles has been contributing disproportionately to recent charge-offs. The company attributed the trend to certain third-party debt-resolution practices and emphasized that it does not reflect broader deterioration in portfolio credit quality.
According to Graham, the trend became evident as borrowers from the November 2025 repayment wave entered repayment earlier this year.
Following an internal review, Sallie Mae identified certain third-party debt-resolution firms in the debt management space that market products as private student loan refinancing solutions. The company indicated that these firms subsequently negotiate discounted settlements through SLM’s recovery channels after borrowers enter default.
Management believes these practices are influencing repayment behavior among certain borrowers and contributing to elevated charge-offs. Although the issue was concentrated in a limited segment of the portfolio, it had a meaningful impact on charge-offs. As of April 2026, the affected segment accounted for 6.4% of the company's gross charge-offs.
Image Source: SLM Corporation
SLM also stated that borrowers may not fully understand the long-term consequences of such arrangements, including potential damage to credit scores and tax implications associated with forgiven debt.
SLM's Efforts to Navigate Debt Resolution PracticesTo address the issue, Sallie Mae terminated certain recovery-sale contracts and adjusted its settlement and recovery processes. The company is temporarily reducing its reliance on external recovery channels and shifting toward internally managed recovery strategies while it evaluates the evolving landscape.
In addition, SLM has increased outreach to borrowers showing signs of disengagement and is offering temporary loan modification programs to select borrowers in early-stage delinquency. Management believes these actions will help keep borrowers engaged and limit exposure to practices that may contribute to unnecessary defaults.
The company expects these actions to have a near-term impact on recovery activity. Management stated that if normal recovery-sale practices are not resumed before the end of 2026, full-year net charge-offs could increase by approximately $25 million.
However, Sallie Mae noted that internally managed recovery efforts have historically generated higher net present value than selling charged-off loans through recovery-sale channels. Although this approach delays the timing of recoveries, the company expects it to result in better recovery outcomes over the long run.
Our Take on SLMThe actions undertaken by Sallie Mae underscore its commitment to maintaining disciplined credit performance and supporting borrowers throughout the repayment cycle. While the potential near-term impact on recoveries remains a concern, the company's proactive efforts to strengthen internally managed recovery processes and enhance borrower engagement are expected to support long-term credit performance.
The company’s shares have gained 4.5% in the past three months compared with the industry’s 6% growth.
Image Source: Zacks Investment Research
SLM’s Zacks Rank and Key PicksSLM presently carries a Zacks Rank #3 (Hold).
Some better-ranked peers of SLM are Prog Holdings, Inc. (PRG - Free Report) and Encore Capital Group, Inc. (ECPG - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
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